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Showing posts from February, 2013

No W-2 - You can still file your 1040

IRS Issues Annual Advice on Missing Form W-2's Each year, the IRS issues annual advice on actions a taxpayer should take when the taxpayer has not received his or her Form W-2. IRS Website (2/8/13). According to the IRS, if a taxpayer has not received his or her Form W-2, the taxpayer should: (1) Contact the employer. Ask the employer or former employer to send the W-2 if it has not already been sent. Double check that the employer has the correct address. (2) Contact the IRS. After February 14, a taxpayer can call the IRS at 800-829-1040 if the taxpayer has not yet received his or her W-2. The IRS will require the following information: (i) the taxpayer's name, address, social security number and phone number; (ii) the employer's name, address and phone number; (iii) the dates the taxpayer worked for the employer; and (iv) an estimate of the taxpayer's wages and federal income tax withheld in 2012, based on the taxpayer's final pay stub or leave-and-earnings stat…

Employers - are you stuck with "Obamacare"

Employers - are you stuck with "Obamacare"Obamacare is a disaster for employers that have low wage employees. Frankly, many companies will need to change how they conduct business in order to stay competitive.

Number of EmployeesDoes your business have emough employees to be subject to the pay-or-play Obamacare tax? This is called the shared responsibility requirement forcing employers to pay a huge penalty or provide health insurance.

50 Employee Requirement.The simple definition is employers with 50 or more full-time equivalent workers. Unfortunately, this is only a partial answer.

The tricky term,  full-time equivalent (FTE) covers employees who average 30 hours per week
Note: the normal 40 hour per week definition for full time is not applicable

The time period is the prior year. Since the mandate begins in 2014, the year 2013 controls the determination of the number of employees. There are some exceptions for seasonal workers, but this is very tricky. IRS Notice 2012-58…

When a Relative is a Tax Dependent

Relatives as DependentsYou can  take exemptions for qualifying relatives.

Rule: A relative does not have to live with you and there is no age requirement.

Support: First, you must be supporting the qualifying relative.

Qualifying Relative: In order to be a qualifying relative, the person must:
Have earned less than $3,800 in gross income or unemployment benefits for the year 2012Have received more than half of their support from you. This does not have to be cash payments. It can be food, clothing, shelter, education, medical and dental care, recreation and transportation.  To calculate if the relative meets this test:  add all of your expenses for them; subtract  welfare, food stamps. government benefits and earnings.Be a U.S. resident or citizen, or a resident of Mexico or CanadaNot be married filing jointlyQualifying relatives could be your:


childparentsiblingstepparentstepsiblinghalf siblinggrandparentgrandchildAny in-law: son-, daughter-, mother-, father-, brother- or sister-in-lawCou…

When a Child is not a Tax Dependent

You cannot claim your child as a dependent if:


You are being claimed as a dependent by someoneYour child is married and filing a joint tax return (unless he/she is filing just to claim a refund of withheld tax and isn't taking a personal exemption)Your child is not a resident of the U.S., Mexico or CanadaYour child is over 19 and not a full-time studentYour child is 24 or older on December 31 of the tax yearYour child provided more than half of his or her own supportYour child did not live with you for half the year, 183 days or more. Note: the exception to this rule - illness, education, business, vacation or military services, or the child was born or died during the yearYou are separated or divorced, and your child spends more time at your ex-spouse's home.